Sukesh and Vanita were partners in a firm. Their partnership agreement provides that:

(i) Profits would be shared by Sukesh and Vanita in the ratio of 3 : 2;

(ii) 5% interest is to be allowed on capital:

(iii) Vanita should be paid a monthly salary of ₹ 600.

The following balances are extracted from the books of the firm, on March 31, 2017.

  Sukesh (₹) Vanita (₹)

Capital Accounts

Current Accounts


40,000 (Cr.)



40,000 (Cr.)



Net profit for the year, before charging interest on capital and after charging Sukesh’s salary was ₹ 9,500. Prepare the Profit and Loss Appropriation Account and the Partner’s Current Accounts.

[Ans: Profit transferred to Sukesh’s Capital, ₹ 3,300 and Vanita’s Capital, ₹ 2,200]

Anurag Pathak Changed status to publish March 24, 2024
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